Suzhou Green Control Transmission Technology Co., Ltd.
Announcement on Investment Risks of Initial Public Offering of Shares on the ChiNext Market
Sponsor (Lead Underwriter): China International Capital Corporation Limited
Suzhou Green Control Transmission Technology Co., Ltd. (hereinafter referred to as "Green Control Transmission," "the Issuer," or "the Company") has received approval from the Listing Committee of the Shenzhen Stock Exchange (hereinafter referred to as "SZSE") for its application for an initial public offering of shares (hereinafter referred to as "this Offering") and listing on the ChiNext market. The China Securities Regulatory Commission (hereinafter referred to as "CSRC") has also approved the registration (CSRC License [2026] 1507).
The sponsor (lead underwriter) for this Offering is China International Capital Corporation Limited (hereinafter referred to as "CICC," "the Sponsor," or "Sponsor (Lead Underwriter)").
The number of shares to be offered in this Offering is 68.341235 million shares, accounting for approximately 15.00% of the total share capital after the issuance. All shares are newly issued public offerings, and no shares will be sold by existing shareholders. The shares offered are intended to be listed on the ChiNext market of the SZSE.
The offering price of RMB 8.50 per share corresponds to a diluted P/E ratio of 27.56 times based on the lower of the Issuer's net profit attributable to parent company shareholders before and after deducting non-recurring gains and losses in 2025. This is higher than the average static P/E ratio of 22.93 times for the same industry in the past month published by China Securities Index Co., Ltd., and lower than the average static P/E ratio of 39.31 times (excluding extreme values) for the same industry's listed companies in the A-share market in 2025, after deducting non-recurring gains and losses. There is a risk that the Issuer's stock price may decline in the future, leading to losses for investors. The Issuer and the Sponsor (Lead Underwriter) remind investors to pay attention to investment risks, prudently assess the reasonableness of the offering price, and make investment decisions rationally.
This Offering is conducted in accordance with the "Administrative Measures for the Issuance and Underwriting of Securities" (CSRC Order No. 228) (hereinafter referred to as the "Measures"), the "Administrative Measures for the Registration of Initial Public Offerings of Securities" (CSRC Order No. 205), the "Shenzhen Stock Exchange Implementation Rules for the Issuance and Underwriting Business of Initial Public Offerings of Securities (2026 Revision)" (SZSE Letter [2026] 552) (hereinafter referred to as the "Implementation Rules"), the "Shenzhen Market Implementation Rules for Online Issuance of Initial Public Offering Shares" (SZSE Letter [2018] 279) (hereinafter referred to as the "Online Issuance Implementation Rules"), the "Shenzhen Market Implementation Rules for Offline Issuance of Initial Public Offering Shares (2025 Revision)" (SZSE Letter [2025] 224) (hereinafter referred to as the "Offline Issuance Implementation Rules"), the "Shenzhen Stock Exchange Implementation Measures for Investor Suitability Management for the ChiNext Market (2020 Revision)" (SZSE Letter [2020] 343) (hereinafter referred to as the "Investor Suitability Management Measures"), the "Rules for the Underwriting Business of Initial Public Offerings of Securities" issued by the Securities Association of China (hereinafter referred to as "SAC") (SAC Letter [2023] 18), the "Rules for Offline Investors in Initial Public Offerings of Securities" (SAC Letter [2025] 57) (hereinafter referred to as the "Offline Investor Management Rules"), and the "Guidelines for Classification and Management of Offline Investors in Initial Public Offerings of Securities" (SAC Letter [2024] 277) (hereinafter referred to as the "Guidelines for Classification and Management of Offline Investors in Initial Public Offerings of Securities"). Investors are advised to pay attention to changes in relevant regulations.
The Issuer and the Sponsor (Lead Underwriter) specifically remind investors to pay attention to the following: